The Federal Government (FG) has stated that increasing domestic refining capacity is essential to reducing petrol prices in Nigeria. Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), emphasized that relying on locally refined fuel instead of imports would help lower costs and improve the country’s energy sector.
Speaking during a meeting with Mrs. Joyce Akabogu, CEO of OTL Downstream Development in Africa Ltd/Gte, Lokpobiri highlighted the importance of Nigeria’s downstream petroleum sector and the government’s commitment to enhancing local refining.
According to him, the downstream sector plays a critical role in the country’s economy, as refining crude oil domestically could generate three times more revenue than selling crude oil directly.
He stated,
“The government is focused on increasing in-country refining capacity. This is reflected in the recent issuance of licenses for new refineries and ongoing support for local refining initiatives.”
Lokpobiri added that President Bola Tinubu’s administration believes that improving Nigeria’s refining capacity will reduce dependence on imported petroleum products and promote a competitive market. This, in turn, is expected to gradually lower fuel prices for Nigerians.
The minister also addressed the removal of fuel subsidies, explaining that it was a strategic decision aimed at boosting local refining and positioning Nigeria as a net exporter of petroleum products in the long run.
“The subsidy removal was necessary to enhance our refining capabilities and ensure that Nigeria eventually becomes self-sufficient in fuel production.”
The meeting was also in preparation for the upcoming OTL Africa Downstream Energy Week, a conference designed to foster collaboration within Africa’s downstream energy industry.
Lokpobiri expressed support for the event, stating that Nigeria is well-positioned to host discussions on the future of energy and refining. He confirmed his participation in the 2025 edition alongside key government agencies.
With these developments, the FG remains optimistic that expanding domestic refining capacity will be a long-term solution to high petrol prices in Nigeria.
